American Consumers

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In the third quarter of 2008, Americans began saving more and spending less.
Hurrah! That only took 40 years to happen. We've been borrowing, borrowing,
borrowing  living off and believing in the wealth effect, first in
stocks, which ended badly, then in real estate, which has ended even worse.
Now we're out of bubbles. We have a lot less wealth  and a lot more effect.
Household debt in the U.S.  the money we owe as individuals  zoomed to
more than 130% of income in 2007, up from about 60% in 1982. We enjoyed
living beyond our means  no wonder we wanted to believe it would never end.